INVESTORS snapped up shares in Marks & Spencer yesterday after it emerged a private equity firm had looked at buying it.

The stock jumped 15¼p to 371¾p on reports that CVC Capital Partners had explored taking the fashion and food chain private.

CVC is said to have approached executives both inside and outside the company about a possible management role under private equity control. It is not believed to have moved beyond an initial assessment of M&S, nor to be pursuing a bid.

M&S chief executive Marc Bolland is trying to revive the chain’s flagging fortunes with a board shake-up and international expansion after clothing sales slumped.

The retailer, which fought off a £9.1billion bid by BHS owner Sir Philip Green in 2004, has seen its market value more than halve over the past five years as it battles falling sales. The price could be about £7billion this time.

M&S chief executive Marc Bolland is trying to revive the chain’s flagging fortunes with a board shake-up and international expansion after clothing sales slumped

The FTSE 100 Index ended the session unchanged at 5776.6 as hopes for economic stimulus in the US faded and German Chancellor Angela Merkel failed to grant Greece any concessions ahead of a report on its public finances by the European Commission, ECB and IMF.

HSBC retraced 2p to 557p after rating agency Standard & Poor’s reduced its outlook on the bank to negative following regulatory allegations of control failings linked to US anti-money laundering rules.

Fund manager Ashmore weakened 15p to 331½p as Citigroup reduced its recommendation to “sell” in expectation of consensus earnings downgrades.

Defensive stocks made a comeback, led by medical device maker Smith & Nephew with a 10p gain to 668p, Nurofen maker Reckitt Benckiser adding 53p to 3615p and British Gas owner Centrica inflating 4¼p to 327½p.

A forecast of strong annual results next month by broker Peel Hunt boosted home furnishings group Dunelm by 36p to 595 1/2p.

Investors dug into Sirius Minerals by ¼p to 15½p on positive drilling results at its York potash project.

Road and rail haulier Stobart Group spluttered 4¼p to 115p after it reported short term performance in transport below market hopes.

●The Dow Jones Industrial Average rose 64.06 points to 13121.52 in mid-session despite a disappointing government report about orders for durable goods such as computers and machinery.